Jersey Oil & Gas, an oil and gas company focused on the UK Continental Shelf , is set to complete a farm-out of its North Sea assets. The farm-out agreed with Norway’s Statoil in August is expected to be completed soon.
“Following receipt of funds by all parties, which is expected imminently, JOG will have completed the sale and purchase agreement with Statoil…,” Jersey Oil & Gas said on Thursday.
Statoil is taking, in aggregate, a 70 percent, working interest in UK Seaward Licence P.2170, Blocks 20/5b and 21/1d (the “P.2170 Licence”) located in the UK Central North Sea.
Under the agreement, Statoil will pay $540,000 to Jersey Oil & Gas.
“The balance of the US$1.2 million cash consideration, due to JOG as part of the farm-out agreement, is payable to the company’s partners in the Athena asset, in accordance with the company’s historical settlement agreement,” JOG said.
Post completion of the Farm-out, Statoil will hold 70 percent of Licence P.2170 as operator and will fund all costs up to $25 million in respect of the first exploration well to be drilled.
Jersey Oil and Gas retains an 18 per cent interest, of which 10 percent will continue to be carried by its partner CIECO, pursuant to the pre-existing arrangements between the parties, and CIECO will retain a 12 per cent interest
Andrew Benitz, CEO of Jersey Oil & Gas, commented: “We are delighted to be completing this farm-out to Statoil. The P.2170 Licence area has significant exploration potential for the discovery of oil and we look forward to drilling one of the prospects with our partners, conceivably during 2017.”